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May 2012 News Releases

Associate Professor Paul Byrne’s recent policy paper examines Tax Increment Financing in Missouri

TOPEKA – The Show-Me Institute released Paul Byrne’s, associate professor, economics, Washburn University School of Business, policy paper on “Tax Increment Financing and Missouri: An Overview of How TIF Impacts Local Jurisdictions,” on April 20.

Brief summary of the paper: "Tax Increment Financing (TIF) has become a ubiquitous economic development tool used throughout the United States. TIF takes the new taxes that a development generates and directs a portion of them to repay the costs of the project itself. This study provides the general public and policymakers with a thorough and accessible understanding of the economics of TIF. The study begins with a basic model of how TIF finances and can serve as an incentive for development. The paper also discusses how TIF differs from other economic development incentives and how this difference can result in either a sharing of development costs among overlapping jurisdictions or the municipality capturing school district and county tax revenue. The paper also discusses TIF's role in economic development and tax competition along with the importance of the shifting of economic activity and the but-for provision. The paper also offers some details on TIF use in Missouri, which has 435 TIF districts impacting $1.6 billion of the state's property tax base."

For more information, visit http://www.showmeinstitute.org/publications/commentary/corporate-welfare/743-tif-gives-unfair-advantage.html

The Show-Me Institute is a research and educational institute dedicated to improving the quality of life for all citizens of Missouri by advancing sensible, well-researched solutions to state and local policy issues. For more information about the Show-Me Institute, visit www.showmeinstitute.org.

For Immediate Release May 2, 2012

Contact:

Paul Byrne, associate professor, economics, 785-670-1597

Amanda Hughes, university relations, 785-670-2153

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